Sizing Up Small Caps

Wait for the Shares to Ripen

Murdock's offer undervalues Dole, but could be about the best the company gets. Why investors should hang on to the shares.

David Murdock, the 90-year-old CEO of Dole Food, took a page from his own playbook when he recently offered to buy the 60% of Dole's stock he doesn't already own. If successful, it would be the second time in 10 years that he bought out the fruit and vegetable producer and took it private.

Murdock offered $12 a share for Dole (ticker: DOLE), an 18% premium to the closing price on June 10, the day before the announcement. His bid...